Xinchao, a smart media distribution firm, aims to tap the potential of the offline media market like elevators to target middle-class consumers in Tier 2 and Tier 3 cities, the company said today in Shanghai.

The startup cooperates with China Mobile and Huawei on smart systems to distribute advertisements in office buildings and communities. The media value in the elevator market is still “lucrative and (worth) more than 100 billion yuan” (US$15 billion) in China, said Zhang Jixue, founder and chairman of Xinchao.

“Offline media can still touch consumer groups like middle-class families and young people in Tier 2, Tier 3 regions. The markets still have a great potential," Zhang said, adding that the whole industry is set to hit 100 billion yuan annually.

By July, Xinchao has screens showing advertisements to 200 million consumers in 610,000 elevators in 98 cities.

Xinchao intends to adopt new technologies, including data analysis and the Internet of Things, to reach out to middle-class consumers and challenge market leader Focus Media, the company said.

Focus Media has a bigger share of the market in Shanghai, Beijing and Shenzhen.